Who loses when there is unexpected deflation?
A) nominal-asset holders
B) borrowers
C) lenders
D) nominal-asset holders, borrowers, and lenders

Name: Who loses when there is unexpected deflation? A) nominal-asset holders B) borrowers C) lenders D) nominal-asset holders, borrowers, and lenders
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Question

Quizplus · Accepted Answer

Borrowers lose during unexpected deflation because the real value of their debt increases, making it more expensive for them to repay their loans.

Who Loses When There Is Unexpected Deflation